COULD YOU PLEASE SOMEONE EXPLAIN BRIFELY EACH ASSUMPTION THAT I POST? Assumption

Question

COULD YOU PLEASE SOMEONE EXPLAIN BRIFELY EACH ASSUMPTION THAT I POST?

Assumptions to Standardizing Global New Products

•One product fits all

•Significant homogenization of world consumer needs and wants

- cultural issue are minimal

- incremental profits are less than incremental costs of product   modification

•Lower price/consistent quality that standardization drives, outweighs the benefits of tailored product features

•Economies of scale are greater and more readily achieved.

•There is a preference for global corporate and product image.

Explanation / Answer

Ans 1- having a product that is standardised globally will definitely bring customer and producer of the world close to each other.

Ans 2- definitely homogenized product will definitely provide a smiliar type of customer base to the producer as wants and needs of the customer will; be alomost same.Chances of cultural issue will be minimal as dueto standardized product if the consumer need it then they definitely going to buy it.

definitely incremental cost of the product will be high as product will be standardised so definitely production of the product will also increse due to which the incremental cost will be high than that of the incremental profit .

ANS 3-This assumption is somehow how found out to be true but on the other hand it totally depends onto the field or market in which the producer is involved .FOR Example:- if the producer work in a garment producing field then this statement can be applied upto some extent but not fully.

But if producer work in the field of machinery or as a spare parts producer then the demand of standardised goods is highly demand then in such situation such assumption founds out to be false. As tailored goods will cost high to the producer and due to non standardised product the cost of maintenece of the product will be high for the consumer.

Ans 4- Yes the statement is true economies of scale will be readily achieved as due to standardised goods manufacturer produces in bulk which reduces the cost per unit .

Ans 5- Yes in the current global market the the demand of standardised goods is high as it reduces the cost per unit for the comapany and it forms a familiar image in the mind of the customer so it becomes easy for the consumer to remenber the product due to its quality ,price and other features in the standardization process which remain constnant for a good period of time.

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